Vietnam - Selling and buying

Reaching the consumers

Marketing opportunities

Consumer behavior: Vietnam is experiencing its highest inflation in more than a decade, but consumer confidence in the country is still relatively high. Although inflationary pressure will directly impact consumer behavior within some product and service categories, mid-to long-term prospects in Vietnam are still very encouraging. Vietnam is the fourth most attractive retail market in the world in terms of potential growth owing to both increasing demand for consumer goods and rising disposable incomes, behind India, Russia and China. The retail market of the country has expanded rapidly over the past few years and will accelerate further on the back of rising disposable income, growing consumer spending and sector's liberalization in the coming years, according to new REUTERS market research report, "Vietnam Retail Analysis (2008-2012)".

- Food is the most important component of Vietnam's retail sector and accounts for nearly two-third of total retail sales.

- Non-food sector is expected to grow at a faster pace than food, because of the rise in income and consumer spending on non-essential items such as clothing, electrical and DIY goods.

- Demand for international brands and luxury products will rise as income level move upwards in the country.

- Modern retailing formats like air-conditioned mini-marts, supermarkets and small shopping complexes will become more prevalent in the coming years and will lure consumers away from traditional outdoor markets.

Distribution network

Evolution of the sector: Before the "Doi moi- Renovation", the distribution network was under the State authority having the monopoly in this field. Today, goods are distributed in markets, shops, supermarkets, retailers, wholesalers, etc. Goods circulation follows the laws of supply and demand. Supermarkets become favourite distributors more and more in Vietnam. Apart from Vietnamese owned supermarkets, more and more foreign retailers and wholesalers are interesting in Vietnam market.

Types of outlet: Markets and small retailers are popular canals of distribution in Vietnam. But today the supermarkets network is increasingly open and have the confidence of consumers with regards to the quality and the availability of goods. The leading supermarkets in Vietnam are Saigon Coop, Maxi Max, Big C, Metro Cash and Carry.

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